Re: Income Statement report to show loan paydown amount?

[Mike or Penny Novack]

On 1/9/2018 1:40 PM, Tj Junior wrote:

Wondering if this is possible, the income statement appears to be the
closest I've been able to find.  Looking to find a summary of income and
expenses summarized (e.g total over 1 year rather than by transaction), but
I'd like it to show what's paid towards loans as well.  The income portion
is already there, it's the expense portion I'm having trouble with.

The portion of your mortgage payment that is applied to reducing the 
principle of the loan is NOT an expense, which is why not showing on the 
Income Statement report. It is a reduction of a liability (the mortgage).


In addition to running the Income Statement for a period you should run 
a Balance Sheet for the start of the period (immediately before) and the 
end of the period. It is there that you should see the reduction of the 
liability.


Michael D Novack

PS: Strictly speaking, that portion of your mortgage payment that goes 
into escrow to pay taxes when due, possibly also insurance premiums when 
due, is also not an expense << the escrow account is a restricted asset 
-- when funds from it are actually used to pay tax bills, etc. is the 
transaction which is the expense >>

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Re: Income Statement report to show loan paydown amount?

[Adrien Monteleone]

Check out the Tutorial and Concepts guide.

(The entries I list below are simplified and don’t include multi-level account 
names, yours will vary)

There are two ways to handle credit cards.

The method I prefer is to enter any charges on the card as follows:

Dr. Expense
Cr. Credit Card Liability

(as a general rule to help me keep things straight, I enter expenditures in the 
account where the money is coming from - in this case, I’d enter it in the 
credit card register. If I were paying cash, I’d enter it in the cash register, 
and if writing a check or using a debit card, I’d use the checking register, 
etc.)

Now, regardless of when you pay the credit card balance, the amounts for each 
expense account will show up in their proper periods. (as they should)

Concerning loans, this is a bit different.

Generally, loans are for acquiring assets, not expenses.

If you used the proceeds of a loan for expenses, those purchases would require 
their own transactions.

First you’d have the loan transaction:

Dr. Cash
Cr. Loan

Then when you spend some of that money - say on home improvements you’d enter:

Dr. Expense:Home Improvement
Cr. Cash

Making a payment on a loan or a credit card is NOT an expense. It is a shift 
from an asset to a liability, in this case, a reduction in assets, and a 
reduction in liability. (taking out a loan or credit line is the opposite for 
both - they increase) Charging on a credit card is where the expense happens.

The place to see this change is NOT on the Income Statement. (also listed 
separately as Profit & Loss Statement) That report will only show revenue and 
expenses, not changes in assets and liabilities. (which is what happens when 
you take out or pay off loans/credit)

The proper report for that is the Balance Sheet.

A Balance Sheet however, is not a time-period report. It is a snapshot. If you 
want to see the change from one date to the next, you’ll have to run two 
Balance Sheet reports, one for the start and end dates, then manually calculate 
the changes.

Another report you might find useful which will show ALL money movements is the 
Cash Flow report.

This will show all exchange of funds into and out of selected accounts. By 
default, this will show pretty much everything, but you could limit it to just 
your cash/checking accounts and your credit/loan accounts, save it with a 
special name and run it as desired for any period.

Regards,
Adrien

> On Jan 9, 2018, at 12:40 PM, Tj Junior  wrote:
> 
> Wondering if this is possible, the income statement appears to be the
> closest I've been able to find.  Looking to find a summary of income and
> expenses summarized (e.g total over 1 year rather than by transaction), but
> I'd like it to show what's paid towards loans as well.  The income portion
> is already there, it's the expense portion I'm having trouble with.
> 
> Income summarized for a period:
> Salary
> Bonus
> etc
> 
> Expenses summarized over the same period:
> Mortgage interest
> Mortgage principal
> Insurance
> Groceries
> etc
> 
> I can get it to show the mortgage interest portion easily as it's just an
> expense account, but is it possible to also show the decrease in the loan
> principal without manually calculating it outside of the report?  The
> tricky part seems to be that a payment against a loan account should show
> as the lowering of outstanding principal, but payment against a credit card
> account should show just the expense account items in that account (not a
> lowering of the outstanding total credit).  Would love any thoughts or
> suggestions!
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Income Statement report to show loan paydown amount?

[Tj Junior]

Wondering if this is possible, the income statement appears to be the
closest I've been able to find.  Looking to find a summary of income and
expenses summarized (e.g total over 1 year rather than by transaction), but
I'd like it to show what's paid towards loans as well.  The income portion
is already there, it's the expense portion I'm having trouble with.

Income summarized for a period:
Salary
Bonus
etc

Expenses summarized over the same period:
Mortgage interest
Mortgage principal
Insurance
Groceries
etc

I can get it to show the mortgage interest portion easily as it's just an
expense account, but is it possible to also show the decrease in the loan
principal without manually calculating it outside of the report?  The
tricky part seems to be that a payment against a loan account should show
as the lowering of outstanding principal, but payment against a credit card
account should show just the expense account items in that account (not a
lowering of the outstanding total credit).  Would love any thoughts or
suggestions!
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